CLSA has released a research report maintaining an "Outperform" rating for KE Holdings Inc. (BEKE-W) with a price target of HK$62.
The brokerage noted that recent regulatory concerns surrounding the company have subsided, as the State Administration for Market Regulation has shifted its focus to other industries. CLSA believes this development removes a key sentiment overhang and could act as a catalyst for the stock to catch up on valuation.
The firm stated that as investor attention returns to earnings and the cyclical recovery outlook, KE Holdings Inc. is supported by a robust secondary housing market, potential home price recovery, and the limited impact from new home sales reforms. As such, the company remains the preferred pick in China's real estate sector.
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